Question 1

Which of the following statements about cost and its impact on online shopping is most accurate?
A)Dynamic pricing is commonly used online because there is no need to respond quickly to changes in supply and demand conditions.
B)The margins for online offerings is usually higher than those purchased in traditional marketplaces.
C)Dynamic pricing is the most commonly used pricing strategy for Internet purchases.
D)Any price advantage for online purchases is lost in shipping and handling fees.
E)Lower external information search costs is one of the major reasons for the popularity of online shopping.

Accepted Answer

Lower external information search costs, such as the convenience of being able to compare prices and products without physically visiting multiple stores, is a key factor in the popularity of online shopping. While dynamic pricing and higher margins for online offerings may be true for some cases, they are not universally applicable to all online shopping scenarios. Shipping and handling fees may add to the cost of online purchases, but this is not always the case and can vary depending on the retailer and the product being purchased.

Question 2

Which of the following statements about cost and its impact on online shopping is most accurate?
A)Dynamic pricing is commonly used online because there is no need to respond quickly to changes in supply and demand conditions.
B)The margins for online offerings are usually higher than those purchased in traditional marketplaces.
C)Any price advantage for online purchases is lost in shipping and handling fees.
D)The majority of the most popular items bought online can be purchased at the same price or cheaper than in retail stores.
E)Dynamic pricing is the most commonly used pricing strategy for Internet purchases.

Accepted Answer

Studies have shown that the majority of popular items bought online are cheaper than in retail stores. Shipping and handling fees can impact the overall cost, but many online retailers offer free shipping options. Dynamic pricing is used online, but it is not the most commonly used pricing strategy for Internet purchases. The margins for online offerings can vary but are not necessarily higher than traditional marketplaces.

Question 3

About __________ of U.S. online shoppers engage in showrooming.
A)10%
B)25%
C)33%
D)40%
E)50%

Accepted Answer

The answer of About __________ of U.S. online shoppers engage...

Question 4

Viral marketing refers to
A)an embedded message that causes a pop-up screen to appear every time a user types in a specific word.
B)malicious malware that is used to create doppelgangers on competitors' websites.
C)a subversive program that automatically transfers viruses from one website to another.
D)an Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking, and blogs.
E)an online multi-level marketing promotion that awards participants based upon how many friends they "like" on personal social networking sites such as Facebook.

Accepted Answer

Viral marketing is an Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking, and blogs. It relies on the widespread reach and influence of the recipients to spread the message like a virus, hence the name "viral marketing." A successful viral marketing campaign can lead to exponential growth in brand awareness and reach. Options A, B, C, and E are incorrect and do not accurately describe viral marketing.

Question 5

Online consumers are considered empowered consumers because
A)products and services purchased online often cost less than in a retail store.
B)online shopping does not require that they fight traffic, find a parking space, walk long store aisles, and wait in line at checkout.
C)they can control their shopping and purchase decision process.
D)there are websites for almost any product or service they want.
E)they can engage in an electronic dialogue with marketers.

Accepted Answer

Online consumers have control over their shopping and purchase decision process. They have access to product information, reviews, and price comparisons that help them make informed decisions. They can also easily navigate through different websites to find the best deals and products, giving them more power in their consumer behavior.

Question 6

All of the following are popular product categories for showrooming EXCEPT:
A)toys.
B)books.
C)apparel.
D)consumer electronics.
E)home appliances.

Accepted Answer

Toys are not as commonly showroomed as the other options listed. Consumer electronics, home appliances, books, and apparel are all frequently showroomed due to their high price points and the availability of online price comparisons.

Question 7

At the De Beers website, users can design their own rings and show them to others. One out of five website visitors e-mail their ring design to friends and relatives who will then visit the site. De Beers is using __________ to promote its diamonds.
A)opt-out marketing
B)customerization
C)niche marketing
D)buzz marketing
E)viral marketing

Accepted Answer

The scenario describes users sharing their ring designs with others through email, which can create a viral effect as more people visit the De Beers website. Therefore, De Beers is using viral marketing to promote its diamonds.

Question 8

Which of the following pricing tactics would Ticketmaster use if it wanted to price sports and concert tickets based solely in response to demand for the events?
A)yield management pricing
B)experience curve pricing
C)dynamic pricing
D)cost-plus pricing
E)skimming pricing

Accepted Answer

Dynamic pricing refers to the pricing strategy where the price of a product or service is constantly adjusted based on changes in demand and supply. In the case of Ticketmaster, they would use dynamic pricing to adjust the price of sports and concert tickets in response to demand for the events. This would enable them to maximize their revenue by setting the most suitable price as per the market demand.

Question 9

There are three approaches to viral marketing. Marketers can: (1) embed a message in the product or service; (2) __________; and (3) offer incentives for referrals.
A)use customerization
B)use choiceboards
C)use niche marketing
D)make the website content so compelling that viewers want to share it with others
E)use permission marketing

Accepted Answer

Making the website content so compelling that viewers want to share it with others is known as creating viral content. This approach is the most effective way to spread the message because it allows users to be the ones to share it with their network, increasing the reach and engagement. Embedding a message in the product or service and offering incentives for referrals may work, but they are not as organic and authentic as viral content.

Question 10

All of the following are motivators for showrooming EXCEPT:
A)looking for online promotions or deals.
B)evaluating product displays in retail outlets.
C)obtaining merchandise information (features, benefits).
D)checking merchandise reviews and ratings.
E)seeking lower prices.

Accepted Answer

Showrooming refers to the practice of visiting a physical store to evaluate or try out a product and then using a mobile device to find a better price online. Evaluating product displays in retail outlets is not a motivator for showrooming, as it pertains to the initial physical visit rather than the subsequent online search. The other options - looking for online promotions or deals, obtaining merchandise information, checking merchandise reviews and ratings, and seeking lower prices - are all common motivators for showrooming.

Question 11

People who referred 10 friends to the Procter & Gamble website for Physique shampoo received a free, travel-sized styling spray and were entered in a sweepstakes to win a year's supply of the shampoo. The promotion generated 2 million referrals and made Physique the most successful new shampoo ever launched in the United States. To accomplish this, P&G used __________.
A)opt-out marketing
B)customerization
C)viral marketing
D)niche marketing
E)buzz marketing

Accepted Answer

The promotion generated a large number of referrals, indicating that it was spread through word-of-mouth and viral marketing. P&G incentivized customers to refer their friends, creating a chain reaction of referrals and increasing the reach of the brand. This, coupled with the contest to win a year's supply of the shampoo, made it a successful viral marketing campaign.

Question 12

Buzz is a particularly influential force. According to Jeff Bezos, president of Amazon.com, "If you have an unhappy customer on the Internet, he doesn't tell his six friends, he tells his __________ friends!"
A)106
B)60
C)600
D)6,000
E)6 million

Accepted Answer

The answer of Buzz is a particularly influential force. According...

Question 13

There are three approaches to viral marketing. Marketers can: (1) __________; (2) make the website content so compelling that viewers want to share it with others; and (3) offer incentives for referrals.
A)embed a message in the product or service
B)use customerization
C)use choiceboards
D)use niche marketing
E)use permission marketing

Accepted Answer

The answer of There are three approaches to viral marketing....

Question 14

Visitors to the Universal Studios theme park can borrow one of three user-controlled webcams to take pictures of the park and themselves enjoying the park. Then the webcam users can e-mail the pictures to their friends. The average webcam user sends four e-mails to friends and has resulted in more than 6 million park images being sent to potential visitors. Universal Studios is using __________ to promote its theme park.
A)viral marketing
B)opt-out marketing
C)customerization
D)niche marketing
E)buzz marketing

Accepted Answer

Universal Studios is using viral marketing to promote its theme park through the use of user-controlled webcams and e-mailing pictures to friends. This method encourages visitors to share their experiences with others and generates word-of-mouth advertising.

Question 15

When Microsoft's Hotmail included the tagline, "Get your Private, Free E-mail from Hotmail," on each of the millions of e-mails it processed daily, it was using __________.
A)opt-out marketing
B)viral marketing
C)customerization
D)niche marketing
E)buzz marketing

Accepted Answer

The answer of When Microsoft's Hotmail included the tagline, "Get...

Question 16

Buzz is particularly influential for which of the following items?
A)toys, pharmaceuticals, motion pictures, and consumer electronics
B)parenting, gardening, retirement funds, and health insurance
C)funeral services, cruises, foreign travel, and higher education
D)daycare, jewelry, restaurants, and road paving
E)tennis lessons, veterinarians, dance studios, and pressure washing

Accepted Answer

Buzz is most influential for items that are trendy and have a strong popular appeal, such as toys, pharmaceuticals, motion pictures, and consumer electronics. These items are often driven by social influence and word-of-mouth recommendations, making buzz a powerful marketing tool. The other options are less likely to be heavily influenced by buzz marketing.

Question 17

An Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking, and blogs is referred to as __________.
A)buzz marketing
B)customerization
C)viral marketing
D)liking
E)permission marketing

Accepted Answer

Viral marketing is the Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking, and blogs. Buzz marketing relies on word-of-mouth communication and does not necessarily involve online sharing. Customerization is the practice of tailoring products, services, and marketing efforts to individual customers. Liking refers to the act of expressing approval or support for a brand or product on social media platforms. Permission marketing involves obtaining consent from customers before sending them promotional messages.

Question 18

Showrooming refers to
A)areas in retail stores where point-of-purchase displays are used to show goods for sale.
B)an arrangement whereby a firm reaches different buyers by employing two or more different retail layouts and atmospherics for the same basic product.
C)competition among retail firms in different types of businesses but which sell the same product.
D)retailers that utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, television home shopping, and online retailing.
E)when shoppers visit a retail store to inspect merchandise, but then purchase that merchandise online, either from the store or one of its competitors.

Accepted Answer

Showrooming is the practice of visiting a physical retail store to examine a product in person, then purchasing the product online from a different retailer at a lower price.

Question 19

The practice of changing prices for products in real time in response to supply and demand conditions is referred to as __________.
A)dynamic pricing
B)virtual pricing
C)experience curve pricing
D)skimming pricing
E)elasticity pricing

Accepted Answer

Dynamic pricing is the practice of changing prices for products in real time in response to supply and demand conditions. Virtual pricing and experience curve pricing are not commonly used terms in the pricing strategy. Skimming pricing is a strategy of charging a high price for a new product release before gradually lowering the price, and elasticity pricing is a strategy of setting the price based on the elasticity of demand.

Question 20

When a shopper visits a retail store to inspect merchandise, but then purchases the merchandise online, it is referred to as __________.
A)Multichannel retailing
B)Multichannel marketing
C)Intertype retailer competition for customers
D)Showrooming
E)Intratype retailer competition for customers

Accepted Answer

Showrooming is the act of visiting a brick and mortar retail store to examine a product, but then purchasing it online. This trend has become increasingly popular with the rise of e-commerce and mobile shopping.

Quiz 18: Implementing Interactive and Multichannel Marketing

Which of the following statements about cost and its impact on online shopping is most accurate?

Which of the following statements about cost and its impact on online shopping is most accurate?

About __________ of U.S. online shoppers engage in showrooming.

Viral marketing refers to

Online consumers are considered empowered consumers because

All of the following are popular product categories for showrooming EXCEPT:

At the De Beers website, users can design their own rings and show them to others. One out of five website visitors e-mail their ring design to friends and relatives who will then visit the site. De Beers is using __________ to promote its diamonds.

Which of the following pricing tactics would Ticketmaster use if it wanted to price sports and concert tickets based solely in response to demand for the events?

There are three approaches to viral marketing. Marketers can: (1) embed a message in the product or service; (2) __________; and (3) offer incentives for referrals.

All of the following are motivators for showrooming EXCEPT:

Buzz is a particularly influential force. According to Jeff Bezos, president of Amazon.com, "If you have an unhappy customer on the Internet, he doesn't tell his six friends, he tells his __________ friends!"

There are three approaches to viral marketing. Marketers can: (1) __________; (2) make the website content so compelling that viewers want to share it with others; and (3) offer incentives for referrals.

When Microsoft's Hotmail included the tagline, "Get your Private, Free E-mail from Hotmail," on each of the millions of e-mails it processed daily, it was using __________.

Buzz is particularly influential for which of the following items?

An Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking, and blogs is referred to as __________.

Showrooming refers to

The practice of changing prices for products in real time in response to supply and demand conditions is referred to as __________.

When a shopper visits a retail store to inspect merchandise, but then purchases the merchandise online, it is referred to as __________.